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Union Finance Minister Nirmala Sitharaman submitted the Economic Survey (2022-23) in Parliament on Tuesday. She presented the paper to the Lok Sabha following President Droupadi Murmu’s speech to both Houses of Parliament. Tuesday is the first day of Parliament’s Budget session.
GDP growth is expected to be 6-6.8 percent, the worst in three years, due to macroeconomic concerns in the next fiscal year.
According to the Economic Survey, inflation is expected to be 6.8 percent in the current fiscal year, which is neither too high to discourage private consumption nor too low to dampen investment.
According to the pre-Budget Economic Survey, India would continue to be the world’s fastest growing major economy. According to Economic Survey, India has the world’s third-largest economy in terms of PPP (purchasing power parity) and the fifth-largest in terms of exchange rate.
The economy has virtually recovered what was lost, restarted what had been stalled, and re-energized what had slowed during the epidemic. It further stated that India expanded at an 8.7 percent annual rate in FY22.
“India outperformed most countries in overcoming an exceptional set of obstacles,” it stated. Since the Covid-19 epidemic, India’s economy has recovered, but the Russia-Ukraine crisis has caused inflationary pressures, prompting central banks, including India’s, to reverse the ultra-loose monetary policy implemented during the pandemic.
Despite being over the central bank’s inflation goal in FY23, the poll found that the rate of price rises is neither too fast nor too slow to discourage private consumption or investment.
The survey said noted that “the current account deficit (CAD) may continue to widen as global commodity prices remain elevated, but the economic growth momentum stays strong. If CAD widens further, the rupee may come under depreciation pressure. However, the overall external situation will remain manageable.” “India has sufficient forex reserves to finance CAD and intervene in the forex market to manage rupee volatility,” it said.
According to the survey, the downside risks to the global economic outlook remain significant as inflation lingers in advanced nations and central banks continue to raise key interest rates.
“The challenge to rupee depreciation persists, with the likelihood of further US Fed interest rate hikes,” it said. It also stated that borrowing costs may remain “higher” for a longer length of time, and that persistent inflation may extend the tightening cycle.